The Reserve Bank of Australia has published the minutes of its April policy meeting.
Casting minds back o the April statement, the RBA’s comfort to taper its bond purchases lifted AUD significantly higher so markets are looking for more clarity around this either from the minutes or later today from a Livestream on RBA site titled, “Economic and Financial Update”.
RBA Minutes
- RESERVE BANK OF AUSTRALIA MINUTES : BOARD REMAINED COMMITTED TO SUPPORTING JOBS, INCOMES AND BUSINESSES
- 20-Apr-2020 19:30:41 – RBA MINUTES: AUSTRALIAN FINANCIAL SYSTEM REMAINED RESILIENT
- 20-Apr-2020 19:31:14 – RBA MINUTES: COORDINATED MONETARY AND FISCAL RESPONSE WOULD SOFTEN EXPECTED ECONOMIC CONTRACTION
- 20-Apr-2020 19:31:24 – RBA MINUTES : FREQUENCY OF LONGER TERMS BOND OPERATIONS TO BE ADJUSTED AS NECESSARY ACCORDING TO MARKET CONDITIONS
- 20-Apr-2020 19:31:30 – RBA MINUTES: VARIOUS RESPONSES WERE PROVIDING CONSIDERABLE SUPPORT TO AUSTRALIAN HOUSEHOLDS AND BUSINESSES
- 20-Apr-2020 19:31:43 – RBA MINUTES : LIKELY THAT SMALLER AND LESS FREQUENT PURCHASES OF GOVERNMENT BONDS WOULD BE REQUIRED
- 20-Apr-2020 19:31:52 – RBA MINUTES: THE POLICY PACKAGE HAD HELPED TO LOWER FUNDING COSTS AND STABILISE FINANCIAL CONDITIONS
- 20-Apr-2020 19:32:05 – RBA MINUTES : TO DO WHAT WAS NECESSARY TO ACHIEVE THE THREE-YEAR YIELD TARGET
- 20-Apr-2020 19:32:09 – RBA MINUTES: THE BANK WOULD CONTINUE TO DO WHAT WAS NECESSARY TO ACHIEVE THE THREE-YEAR YIELD TARGET
AUD reaction
AUD/USD had been testing 0.6390 overnight but then rolled over to 0.6315 and back to around Friday’s close ahead of the minutes. Immediately on the release of the minutes, AUD/USD was trading at 0.6327 as the minutes were being digested.
More to come…
Governor Lowe will also deliver a speech (live-streamed on RBA site) titled “Economic and Financial Update” late in the day.
Description of RBA Minutes
The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD.
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